How to Find the Right Outsourcing Partner? 5 Key Determining Factors

Choosing the right outsourcing partner is no easy feat. There are plenty of processes you must go through before deciding which provider is the perfect match for your business. For most companies, outsourcing is a strategic tool used to scale-up and expand their business. There’s no reason why you can’t take advantage of that too.


When starting with the idea to outsource, I’m sure you’ll have questions such as these:

  • Which aspects of my company do I want to outsource?
  • How much will outsourcing cut costs?
  • Does my prospect have experience in providing the service that I require?
  • Can my prospect hire the right people to handle my projects?
  • Is my prospect providing services to other companies similar to mine?
  • Is my prospect up-to-date with the latest technology and infrastructure?

Allow this write-up to guide you in answering all these questions and more.

Here are a few key steps to consider before choosing the right outsourcing partner:

Basic Understanding of Outsourcing

Before you look for a provider, you should have a basic grasp of outsourcing. You should understand that there are certain risks as well as benefits that come along with outsourcing. It’s well-known that outsourcing is cost-effective and reliable. However, you must conduct a thorough review of data privacy and other international laws for security implications, especially for offshore outsourcing. There’s also so much more that needs to be checked before engaging with an outsourcing partner.

Clearly Defined Plan

You and your team will need to go through several discussions to identify why your business needs to outsource. First, define the need to outsource. Is outsourcing the possible solution to your business goals? If the answer is yes, then you’ll need to determine if outsourcing will be used as a short-term or a long-term solution. There are plenty of businesses that try outsourcing for a brief amount of time and then realize that it’s the solution they need to achieve long-term business goals. But still, it’s up to you to determine what’s best for your business. After you’ve identified the service duration, it’s time to define the scope of work that needs to be outsourced. You’ll need a specific and clear laid-out plan so that you and your chosen outsourcing partner can easily close the deal and avoid any misunderstanding in the future.  

Get to Know Your Prospect

Once you’ve laid out your plan and identified the specifics, you’ll need to conduct thorough background research on your prospect. Find out about their internal processes, values, and objectives. You’ll feel more at ease to work with them if their company objectives are aligned with your objectives. Cultural compatibility is also a weighing factor. When looking for a prospect, there are numerous outsourcing companies in the Philippines that can understand and relate to western culture.

You’ll also need to check if your prospect can work with your budget and be ready for negotiations. You don’t want to compromise on quality, but you need to reach ROI as well. Watch out for certain outsourcing providers that have additional or hidden charges. The right partner should practice transparency at all costs. 

Sharing private data with your outsourcing partner is also unavoidable. You’ll have to make sure that your prospect complies with the global standards for data privacy and security policies. They should also be updated with the latest data technology and infrastructure.

Status as a Market Leader

Finding out about your prospect’s reputation is also an important factor to consider. These days, it’s easy to search for your prospect’s presence on the internet. Observe how they interact with their customers on social media and check for a proven track record through customer testimonials. Feel free to interview previous and existing customers of your prospect to find out any negative or positive feedback on their performance. If you find a customer that’s similar to your business, measure the prospect’s capability to deliver the same result for you. Referrals and word of mouth are also positive indicators that can secure your decision to partner with them.

Flexible and Passionate

Get to know your prospect a bit more. Find out if they’re results-oriented and can meet your demand. Your prospect should take the time to understand your business processes and needs. Being flexible means they can adjust to any roadblock that may arise. They should also be able to take on complex business challenges. A prospect that’s passionate about what they do will make you feel sound about your decision to outsource.

Now that you have a clear hold on undertaking an outsourcing partner, it’s time to get in touch with your candidates. Once you’ve chosen the right supplier, you’re ready to draft the SLA and compose KPIs, qualifications, and job descriptions.

Remember, the key to building a productive relationship is trust. The same concept applies to business partnerships. And with outsourcing to the right service provider, it’s a win-win.

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